Educate in the workplace

A successful business is driven by productive and motivated people.

More and more employers are seeing the tangible benefits of equipping their employees with a financial education. The simple reality is that employee debt and financial stress become a businesses’ problem because it results in a loss of productivity, turnover of experienced staff and negatively impacts the overall efficiency of your teams. The invariable effect is a loss of company profits.

Over the last few years
employers
have worked with TMS to educate their employees because:

Staff are more motivated to achieve business objectives when they are also achieving their own goals.

There are significant decreases seen in areas of absenteeism and presenteeism.

There is a reduction in requests for staff loans.

Managers spend less time dealing with distractions.

Whenemployeesare equipped to be good money managers they:

Reduce or eliminate their debt and related financial stress

Have better cash flow through prioritised spending

Plan and achieve lifestyle goals

Can protect themselves from unscrupulous creditors and collection agencies

Improve their levels of financial security and independence

FACT BOX

TMS FACT # 17

Studies in the USA
show that changing employee’s financial behaviour is actually easier than changing their diet and exercise habits.
The result?
Decrease in stress and related health-care costs.

TMS FACT # 25

Most employees agree that January is ‘the longest month of the year’ due to receiving their pay too early in December. This invariably means staff begin the year with low morale instead of arriving back rested and full of energy.

TMS FACT # 30

The Money School has extensive experience creating & implementing successful Employee Financial Education programs for a wide range of clients, including some major financial services companies in South Africa.

TMS FACT # 7 Think debt is low-income problem? Think again.

Among consumers with annual incomes of R300k - R500k, debt to disposable income was just over 100%. For those earning R500k - R750k, the level was 130%, and for those earning more than R750k, the level fell to just under 120%.

Source: Study conducted by the
University of SA’s Bureau of
Market Research in 2008.

Why Job Hopping Doesn’t Pay

The Money School studies have shown that when people ‘Job Hop’ it is often because they are unable to solve their cash flow problems and believe an increase in earnings is the solution to their financial pressure.

This is not the answer because the underlying issue of money mismanagement is not going to go away with a change of scenery. The correct approach is to seek advice and implement a debt elimination plan to alleviate financial pressure.

The real long-term result of people who take a proactive and informed approach is they get rid of their debt and learn how to build wealth. They are then in a better position to develop their careers.

High interest debts can gain momentum quickly, overwhelming staff's ability to cover normal living expenses. Their solution? Get a new job. And more credit. Our solution? Give your employees a financial education that will prevent both of those ill-advised ‘solutions’.

Want to know why 76% of employees’ take-home pay is going to servicing their debt? Or why 32 – 40 year-olds who bought a house during the boom and have two kids at private schools are most at risk?
Click here ›

A salary increase is only a temporary fix unless it lands in the hands of a person who knows what to do
with it.